Non-bank announces big policy enhancements on prime product

by Julia Corderoy12 Mar 2015
Non-bank lender Resimac has announced sweeping policy enhancements across its standard prime home loan product, which it says will mean more flexibility for borrowers and brokers.

Resimac will no longer require mortgage insurance on standard prime full doc loans to 80% LVR and SMSF loans to 70% LVR. Resimac chief commercial officer Allan Savins said the removal of mortgage insurance on these lower risk loans will give the lender more flexibility to enhance its product suite. 

“The removal of mortgage insurance at these LVR levels has allowed us the flexibility to amend a large number of policies. We are always striving to create products that give us a real point of difference in the market place. These changes have further improved our competitive position when it comes to providing flexible lending solutions,” he said. 

As a result, all of Resimac’s standard prime full doc loans to 80% LVR will no longer require credit scoring and have no limit on consolidation – both policies that were previously imposed by LMI providers. 

The non-bank has also announced it will increase the maximum loan amounts to $1.5 million, accept late payments of up to 7 days on refinances and accept defaults of up to $500 (maximum of 2 listings). Other policy enhancements include the acceptance of units with a minimum floor size of 40sqm as security – previously the minimum was 50sqm under 80% LVR.

According to Savins, these policy enhancements mean more borrowers will be able to qualify for a prime loan, whereas previously they may have had to obtain a specialist product solution.

Further, Savins says self-employed borrowers who have enjoyed income growth over the previous two years can also expect benefits under these changes. 

The non-bank will now accept up to a 50% increase over prior year’s income when assessing serviceability, and may even consider using the most recent year’s income when supported by six months BAS statements for strong borrowers.

“Resimac have always based our proposition on ‘solution based lending’. In an environment where competition in the market has diminished, Resimac will continue to amend products and policy to allow brokers greater choice and flexibility when finding a solution for their clients,” Savins said.

New online poll: Should first home buyers be able to access their superannuation for a house deposit?